Shanghai Xizhi Technology Co (1879) investor relations material

Executive summary

• Revenue for the six months ended June 30, 2026, reached RMB79.78 million, up 284% year-over-year, with a consolidated gross profit margin of 65.8%.

• Adjusted net loss (non-IFRS) was RMB147.15 million, broadly unchanged from the prior year, while reported net loss was RMB3,256.74 million, mainly due to non-cash fair value changes of financial instruments converted at IPO.

• The company completed its IPO on April 28, 2026, raising net proceeds of approximately HK$2,740.8 million (RMB2,542.80 million), significantly strengthening its cash position.

• Optical interconnect and optical computing businesses both saw triple-digit revenue growth, driven by new product launches and expanded commercial deployments.

• Cash and equivalents, including deposits and financial assets, totaled RMB2,858.63 million as of June 30, 2026.

Financial highlights

• Revenue increased to RMB79.78 million from RMB20.79 million year-over-year.

• Gross profit margin rose to 65.8% from 40.0% year-over-year.

• Adjusted net loss (non-IFRS) was RMB147.15 million, compared to RMB131.44 million a year earlier.

• R&D expenses increased 126% to RMB349.72 million, reflecting intensified investment in technology and higher employee benefits.

• Gross profit grew 532% to RMB52.52 million; cost of sales increased 118% to RMB27.26 million.

Outlook and guidance

• Management expects to reach the revenue threshold for Commercial Company status under HKEX rules by 2027.

• The company aims to consolidate leadership in optoelectronic chip design and accelerate global market expansion and ecosystem development.

• Anticipates continued growth in optical interconnect and computing, driven by industry transition from electrical to optical architectures and silicon photonic chips.

• Will focus on scaling optical computing, software-hardware co-optimization, and real-world deployment.